Investors Finally Get a Closer Look Into China's Bad Bank

They say it is better to be part of the solution than part of the problem. For China Cinda Asset Management, it might be part of both.

Cinda, one of four so-called bad banks set up in 1999 to take on soured loans from China's big state-owned lenders, is set to raise up to $2.4 billion in a Hong Kong initial public offering early next month. The pitch, encapsulated in a 700-page filing issued Monday, is that the company has become...